Trump Wants a "Loyal" Fed Chair, Here Are the Risks
Donald Trump's search for a Federal Reserve Chair to replace Jerome Powell is increasingly complicated. It's not that there aren't enough candidates, but because Trump is demanding too many criteria at once: they must be pro-interest rate cuts, trustworthy to the market, favored by the MAGA base, confirmed by the Senate, and—this is the twist—have "marketability" on screen.
The problem is, the political climate is making the list of candidates seem like a minefield. The Justice Department's investigation into Powell has sparked a backlash in the Senate, with a key Republican senator reportedly prepared to block the process for all of Trump's Fed picks. These tensions could escalate further as Trump adds to his list of other conflicts, including the threat of tariffs against Europe over the Greenland issue.
Some names mentioned on his radar include National Economic Council Director Kevin Hassett, BlackRock executive Rick Rieder, Fed Governor Christopher Waller, and former governor Kevin Warsh. But each has its own set of "homework": Rieder could be attacked by the MAGA camp because of his Wall Street image, Hassett raised concerns about the Fed's independence because he was too close to the White House, Waller was considered too much of a Fed insider, while Warsh was deemed not "soft" enough on monetary policy and not a prominent MAGA figure.
Treasury Secretary Scott Bessent, who led the selection process, tried to keep the process streamlined in the public eye. However, the shadow of Powell's own decision also clouded things: Powell has not yet confirmed whether he will step down when his term as chairman ends, or remain on the board until 2028. Amid all the uncertainty, Trump said he already knows his choice and will announce it "later," while Bessent signaled a decision could come as soon as next week.
Source: Newsmaker.id
